Regulatory and Legal Affairs

🏨 Councilwoman Julie Menin introduced a bill to the New York City Council mandating hotels to obtain a yearly operating license for $200 from the Department of Consumer and Worker Production. The bill requires hotels to maintain room cleanliness, provide front desk and security coverage for large hotels, and employ core employees directly. Violators face penalties. Menin postponed a bill hearing scheduled for Tuesday, July 28, 2024. The legislation is supported by the Hotel Trades Union but opposed by hotel associations, who argue it will increase costs and regulatory burdens. Hotel room rates in NYC increased by 8.5% to $301.61 on average in 2023 after a ban on short-term rentals and the conversion of over 130 hotels into migrant shelters.

🍕 PizzaForno, a 24/7 automated pizzeria, expanded in the first half of 2024 by launching in six U.S. states: Utah, California, Delaware, New York, Florida, and Maryland. In 2024, they awarded 39 new units nationwide, nearly doubling the expansion from the first half of 2023. Mexico saw 20 locations secured, aiming for over 100 units soon, while Canada installed 18 new units. The U.S. expansion included 10 units each in Utah and Michigan, 10 in Key West, Florida, plus single and double unit awards in Texas, New York, and California. Mexico City welcomed the brand's inaugural unit, with plans for expansion in major cities. PizzaForno aims for 25,000 operating units by 2028, targeting campuses and unconventional locations, offering diverse pizza options accessible via digital screens and an app.

💳 U.S. merchants paid nearly $100 billion in swipe fees in 2022 with an average credit card processing fee of 2.24%, potentially rising to 3% per transaction. Swipe fees have doubled over the last decade. Merchants incurred $72 billion in fees last year. Selection of a payment processor is critical for hotels, motels, and B&Bs to avoid high costs and payment mismanagement. Integration with property management systems enables efficient operations, while transparency, affordability, mobile payment solutions, and strong customer service are key processor features to consider.

💸 The California Supreme Court unanimously upheld Proposition 22, which classifies drivers for companies like Uber and DoorDash as contractors, not employees. The decision, confirming a previous appeals court ruling, maintains the outcome of the $200 million lobbying effort by delivery apps for the bill passed in November 2020. This follows the AB5 bill, effective January 1, 2020, which aimed to consider such drivers as employees. Critics argue this contractor status denies drivers employee benefits, while proponents cite work flexibility. The recent ruling is seen as the final say after over four years of legal battles.

🚢 In the early days of e-commerce, the cruise industry faced challenges in integrating online and offline booking processes. Twenty years ago, the author leveraged their graphic design and tech skills to automate cruise selling, optimizing staffing for Cruise411.rt. Today, technology allows any travel agent globally to sell cruises by normalizing content across cruise lines, enabling consistent customer experiences online and in-store. Direct bookings are encouraged by cruise lines, yet agent participation remains crucial. The cruise sector has bounced back post-pandemic, with 2023 surpassing 2019 and further growth expected in 2024. Emerging markets like the Philippines and Indonesia are now significant players, with demands for regulatory compliance across geographies being met through process normalization.

🏖 Gotham Restaurants LLC, known for operating Gotham Restaurant (previously Gotham Bar and Grill), filed for Chapter 11 bankruptcy in New York on Wednesday. The company owes nearly $484,000 to its largest creditor, the NY State Department of Taxation Finance Bankruptcy/Special Procedures Section. Other debts include nearly $97,000 to Dairyland and approximately $84,000 to Baldor Specialty Foods. The 40-year-old restaurant, a Manhattan dining landmark, closed in June due to a $45,000 cyberscam. Founded in 1984 by Alfred Portale, it became a trendsetter in the late '80s with "tall food". Portale left in 2019, and Ron Paprocki led as executive chef before the filing, which reported assets between $1 million and $10 million.

🍝 U.S. Sen. Dick Durbin and Rep. Rosa DeLauro introduced legislation to establish the Federal Food Administration, transferring food safety oversight from FDA. Hazel Analytics data from 2023 shows increased food safety violations post-pandemic. In 2022, the CDC reported a rise in consumer risk to foodborne illnesses. The new agency would include FDA's current food programs and operate under the Department of Health and Human Services. The initiative aims to prevent illness and death from contaminated food.

💸 Sen. Ted Cruz and others introduced the “No Tax on Tips Act,” exempting cash tips from federal income tax starting in 2025. President Trump, at the Republican National Convention in Milwaukee, endorsed the act, citing a Nevada server's complaint about tax on tips. This act could impact restaurant industry employees, as tips comprise 71% of their minimum wage. Critics argue that about half of tipped workers don't earn enough to pay federal income taxes, and the act doesn't exempt employer payroll taxes or state taxes on tips.